After the demise of Prophet Muhammad (pbuh), Islam experienced various narratives so that incomplete understanding of this holy faith resulted in discord, hypocrisy and clashes among Muslim nations. Moderate Islam narrative is one of the important and influential narratives with theoretical and practical support from the conducts of the Infallible Imams (AS), scholastic theologians, jurists and philosophers. Moderation means avoiding extremes in understanding and acting upon the teachings of the holy religion of Islam. As a well-versed political theoretician, Imam Khomeini has embarked on innovation in theoretical and practical politics. This paper, developed through document analysis and qualitative research, intends to find an appropriate answer to the principal question of “What proportionality does moderation have with Imam Khomeini’s thought and what are its political outcomes?” Findings of the paper indicate that Imam Khomeini has realized theorization and leadership of a political system in contemporary period based on a moderate narration of philosophical, ethical, jurisprudential and theological fundamentals of the religion of Islam. This political system has been formed based on Vilayat-e Faqih (guardianship of the Islamic jurist) and religious democracy.